Is the government looking to extract revenue from citizens’ pockets? Leaked information about raising the exchange rate is fueling speculation!

While Iraqi citizens await a package of economic measures and reforms aimed at improving living conditions and curbing the decline in purchasing power, unofficial sources and leaks are circulating news of a potential move within the government to raise the exchange rate of the Iraqi dinar against the dollar in an attempt to contain the escalating financial crisis.

According to these leaks, this move comes amid increasing financial pressures on the country, resulting from a sharp decline in public revenues following a nearly 90% drop or cessation of oil exports, which constitute the primary source of revenue for Iraq’s general budget. This contraction in revenues has directly impacted the government’s ability to finance operational and investment expenditures, most notably salaries and essential services.

In contrast, a number of MPs and economic experts warned of the danger of proceeding with such a measure at the present stage, considering that any change in the exchange rate may lead to additional negative repercussions on the living conditions of citizens, in light of the continued rise in prices of goods and food, and the decline in purchasing power. They pointed out that the local market is already suffering from accumulated economic pressures, most notably the high rates of unemployment, the increasing number of graduates looking for job opportunities, in addition to the widening scope of demands for appointment in the government sector, which makes any ill-considered economic step an additional factor in deepening the crisis instead of addressing it.

In this context, MP Duha al-Bahadli, from the National Approach bloc, commented to Al-Maalomah on the leaks circulating regarding government efforts to devalue the Iraqi dinar against the US dollar. She emphasized that “any such step necessitates parliamentary oversight and close monitoring due to its direct impact on citizens’ living conditions.” Al-Bahadli pointed out that “Parliament is currently suspended due to the legislative recess, but this does not negate the need to monitor new government decisions, especially those related to the economy and the exchange rate, through the relevant parliamentary committees and members concerned with oversight.”

She explained that “Iraq is facing a number of accumulated challenges and crises, at a time when the Iraqi public is exhausted by the measures and reforms that negatively affect their daily lives and future livelihoods.”
For his part, economist Diaa al-Muhsin warned, in a statement to Al-Maalomah, He stated that “any government move to raise the exchange rate of the dollar against the Iraqi dinar will have direct economic repercussions on local markets,” emphasizing that “citizens will be the first to suffer from these measures.”

Al-Muhsin added that “raising the exchange rate will lead to a decrease in citizens’ purchasing power and weaken the real value of employees’ salaries,” in addition to causing “a rise in the prices of goods and foodstuffs, which will negatively impact the standard of living of Iraqi families.”
The Iraqi public is experiencing a state of anxiety and apprehension amidst rapidly evolving regional developments and the accompanying instability, which has directly impacted oil exports, particularly those through the Strait of Hormuz. This comes at a time when estimates indicate a continued absence of effective economic alternatives, which should have been included in contingency plans by previous governments.

These alternatives were intended to reduce Iraq’s near-total dependence on oil as the sole source of public revenue, leaving the Iraqi economy facing recurring challenges with every regional crisis or fluctuation in energy markets. Given these circumstances, concerns are mounting that the government may resort to difficult financial measures, including adjustments to the Iraqi dinar’s exchange rate against the US dollar, in an attempt to address part of the liquidity and revenue crisis. However, observers warn that such a move could directly impact local markets through a new wave of price hikes for goods and services, threatening to exacerbate the cost of living crisis for citizens and further intensify inflation across the country.

Almaalomah.me

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Al-Fahdawi: Iraq does not need Gulf loans and its economy is collapsing, but it will recover.

On Thursday, Muhammad al-Fahdawi, a leader in the Azm Alliance, revealed that the Gulf states refused to lend to Iraq due to the lack of political guarantees because of the tense situation in the region resulting from the war with Iran and the closure of the Strait of Hormuz.

Al-Fahdawi told Al-Maalouma News Agency that “the weakness of the country’s financial management is behind its resorting to asking the Gulf states to support it financially, and all data indicates that the Iraqi economy will recover without the need to borrow from the Gulf states, which handed over the management of their countries’ affairs to the Trump administration, and that the economic crisis that the country is going through has not led to the collapse of its economy.”

He added that “the Gulf states stipulated guarantees from Iraq in order to lend to it and provide financial support to rescue its economy, which is burdened with debt due to weak financial management and its inability to address the economic crisis in a well-thought-out manner, away from the improvisations that destroyed the country’s economy.”

He explained that “the lending process is difficult in light of the current circumstances in the region resulting from the Zionist-American aggression against Iran, the closure of the Strait of Hormuz, and the cessation of oil exports outside of Iraq.”

He affirmed that “the Iraqi economy is not suffering from a major financial crisis domestically, but it is experiencing a shortage of liquidity,” ruling out the collapse of the Iraqi economy in the current period.

Almaalomah.me

Al-Surji: Elections in Kurdistan are not a solution to the issue of forming a government.

Patriotic Union of Kurdistan (PUK) member Ghiath al-Surji confirmed that holding elections in the Kurdistan Region is not the ideal solution to the issue of forming a government.

Al-Surji told Al-Maalouma, “The Kurdish parties in the Kurdistan Region have not discussed holding elections at this time; only the Kurdistan Democratic Party (KDP) is talking about it.” He added, “The PUK is not afraid of holding elections and competing again. In fact, the PUK is confident it will win more seats than it did in the previous elections.”

He explained, “There is optimism within the PUK about winning more seats if elections are held. However, the party believes that holding elections at this time is not a solution, especially since the PUK will not be able to form a government on its own without the KDP, and vice versa.”

Almaalomah.me

Regional events are shaping Iraq’s economic trajectory: a financial crisis, rising prices, and a change in the value of the dinar.

Regional events are directly impacting Iraq’s economic situation, as the country lies at the heart of the turmoil engulfing the so-called Middle East. Following the war instigated by the US and its Zionist ally against the Islamic Republic and its repercussions on the Strait of Hormuz, these factors may lead governments, particularly in Iraq, to ​​adopt decisions that mitigate the damage but ultimately burden the people. This could manifest as salary reductions if the dinar is devalued, austerity measures implemented, and increased fees across various sectors, all of which will negatively affect citizens.

Imran Karkoush, a member of the State of Law Coalition, told Al-Maalouma, “Everyone in Iraq, including its government and the rest of the world, is monitoring the unfolding events in the region and awaiting the outcome of the indirect negotiations between the US and Iran.”

He added, “The Iraqi economy has been affected by the regional developments and military escalation. Iraq is anxiously awaiting the results of the negotiations between Washington and Tehran to restore the status quo in the Strait of Hormuz.”
He explained that “Iraq has been directly affected by the ongoing war in the region. The government is waiting for this conflict to end and for the government to work on strengthening relations within the region and building robust economic ties through rail and trade links between the countries of the region, Iraq, and the world, as Iraq is currently at the heart of the storm and directly affected by current events.”

For his part, economic expert Diaa al-Muhsin explained to Al-Maalomah that “Mustafa al-Kadhimi’s government was the first to take the step of raising the exchange rate of the dollar against the Iraqi dinar under the pretext of providing financial liquidity and addressing the pressures on public revenues resulting from the repercussions of the Coronavirus pandemic. Therefore, any new economic measures must be in line with the requirements of the local market and take into account the living conditions of citizens.”
He added that “raising the exchange rate will lead to a decrease in the purchasing power of citizens and weaken the real value of employees’ salaries, in addition to causing an increase in the prices of goods and foodstuffs, which will negatively affect the standard of living of Iraqi families.”

Al-Muhsin pointed out that “addressing the financial crises should not rely on placing additional burdens on citizens, but rather on revitalizing productive economic sectors, primarily agriculture, industry, and manufacturing, thereby contributing to diversifying income sources and reducing dependence on oil revenues.”

He noted that “the government may resort to other measures beyond raising the exchange rate, including reducing or eliminating some forms of subsidies for fuel, food, and medicine, with the aim of increasing public revenues,” emphasizing that “such steps will directly impact citizens because they target their daily spending and living standards.”
In a related context, political analyst Qasim al-Tamimi told Al-Maalouma that “Iraq has internal debts amounting to $90 billion and external debts of around $30 billion, which Iraq obtained through borrowing due to the decline in domestic cash liquidity.”

He added that “the government will face difficulty in controlling the dollar currency in local markets, especially since this currency is directly linked to the US Federal Reserve, as Iraq depends on oil sales that reach the aforementioned bank before being sent to Baghdad.”

He added that “Iraq is suffering from many problems caused by the current situation in the region after the significant decline in oil sales, and this has clearly affected the availability of funds. Therefore, the al-Zaidi government faces a major challenge regarding the financial and economic situation.”

Almaalomah.me

Barzani refuses to hand over Peshmerga and Asayish weapons to the federal government.

Independent Kurdish politician Didar Haval revealed on Friday that Masoud Barzani informed a US official of his refusal to hand over the Peshmerga and Asayish weapons to the federal government.
Haval told the Information Agency, “A US envoy asked Masoud Barzani to hand over the Peshmerga weapons to the federal government, but he refused this request. Washington’s move comes as it seeks to dissolve these forces and integrate them into a single security system.”

He added, “Masoud Barzani emphasized to the US envoy that the Peshmerga weapons represent the identity and symbol of the history and sacrifices of the Kurdish people, and are not merely a fighting arsenal. He also stressed that the region’s forces and security institutions are not subject to any plans to dissolve or merge the factions.”

He explained that “disagreements arose between the Trump administration and Masoud Barzani following the theft of a shipment of advanced American weapons intended for the Iranian opposition and their distribution to the Peshmerga forces, in addition to the fact that the Peshmerga forces did not participate with the Iranian opposition in striking inside Iran to overthrow its regime,” noting that “Barzani refused to include these forces in the “weapons control” projects of the federal government in Baghdad.”

He confirmed that “these are regular forces under the supervision of the regional presidency.”

Almaalomah.me

Al-Saadi: International companies have apologized for not transporting Iraqi oil through the Strait of Hormuz for security reasons.

Economic expert Rashid al-Saadi revealed on Friday that international companies specializing in transporting petroleum products have apologized for not being able to transport Iraqi oil through the Strait of Hormuz due to security concerns and increased fuel costs.

Al-Saadi told the Information Agency, “The international companies specializing in exporting petroleum products from Iraq to other countries have apologized to the relevant authorities for their inability to continue this task due to the dangerous security situation in the Strait of Hormuz.”

He added, “Iraq’s exemption from the embargo imposed on the Strait of Hormuz remains in effect, but foreign companies have refused to continue transporting Iraqi oil through the Strait of Hormuz due to increased insurance costs, fuel expenses, and the risks associated with using the strait.”

He pointed out that “Iraq relies on the Strait of Hormuz for 90% of its oil exports,” and emphasized that “Iran’s facilitation of Iraq’s use of the Strait of Hormuz to export its oil to various countries around the world remains in effect without imposing any security or navigational restrictions.”

Almaalomah.me

Iraq plans to export its surplus wheat crop abroad.

Iraqi Trade Minister Mustafa Nizar Al-Ani announced on Friday a government plan to export surplus wheat crops abroad, while reassuring farmers that their outstanding financial dues from last year would soon be disbursed.

Al-Ani said in a press conference held on the sidelines of his visit to the grain storage silo in Erbil that the Ministry of Trade has introduced an advanced electronic mechanism for marketing wheat, which relies on registering the data of farmers and trucks in advance, in order to avoid routine and bureaucracy and to avoid the long waiting lines that used to extend for several days when delivering the crop.

Regarding the financial file, the minister acknowledged that there are outstanding payments owed to farmers since last year, stressing that the Prime Minister is paying close attention to settling this file.

Al-Ani indicated that a batch of these delayed entitlements has been released to include all governorates, and that new batches will follow in the coming days to complete the file completely.

Regarding production expectations for the current season, the minister predicted an outstanding production plan, indicating that the areas planted with wheat – including the Kurdistan Region – far exceeded the plan approved by the Council of Ministers.

Al-Ani addressed the farmers, saying: “I assure you that your efforts will not be in vain, and there is a comprehensive plan to receive the entire crop and export what exceeds the country’s actual needs,” stressing that the ministry’s main goal is to establish sustainable food security.

Shafaq.com

Comprising 14 points… Key features of the memorandum of understanding between Washington and Tehran

Bloomberg News reported on Friday that Washington and Tehran will sign a memorandum of understanding in Geneva next Sunday, noting that the signing will be limited to a preliminary memorandum of understanding and not a final agreement.

The agency, quoting a G7 official, indicated “the possibility of the signing being completed on the sidelines of the group’s meeting next week.”

In this context, the Iranian news agency Mehr revealed new details of a draft 14-point memorandum of understanding between Iran and the United States, as reported by a source close to the Iranian negotiating team.

According to the agency, the draft includes a permanent and immediate cessation of hostilities on all fronts, including Lebanon, an American pledge not to interfere in Iranian internal affairs and to respect Iran’s sovereignty, in addition to the complete lifting of the naval blockade within 30 days, an American commitment to withdraw its forces from the vicinity of Iran, as well as the reopening of the Strait of Hormuz within 30 days according to Iranian arrangements.

The draft also includes “suspending sanctions on exports of oil, petrochemical products and their derivatives, ensuring Iran’s full access to its financial resources, and providing plans for the reconstruction of Iran worth no less than $300 billion by the United States and its allies, in addition to a 60-day deadline for negotiations to reach a final agreement based on the nuclear file and the complete lifting of primary and secondary US sanctions, as well as the resolutions of the UN Security Council and the Board of Governors of the International Atomic Energy Agency.”

According to the Iranian news agency Mehr, the draft indicates that its provisions include “renewing Iran’s commitment to the Treaty on the Non-Proliferation of Nuclear Weapons (NPT) not to produce a nuclear weapon, an American pledge during the negotiation period not to strengthen its forces in the region and not to impose any new sanctions, as well as releasing $24 billion of frozen Iranian assets during the final 60-day negotiation period, with half of this amount to be made available to Iran before the start of negotiations, in addition to establishing a monitoring mechanism to implement the agreement, and adopting the final agreement under a resolution of the UN Security Council.”

The draft adds other provisions, including “the final negotiations will not begin before half of the frozen Iranian assets are released, oil sanctions are suspended, and the naval blockade is lifted, with the final agreement being limited to the fate of enriched materials, the enrichment process, lifting sanctions, and the program to rebuild the Iranian economy. Any discussion of the Iranian missile program or Tehran’s support for resistance groups will be removed from the agenda entirely.”

Earlier on Friday, the American website Axios revealed that the memorandum of understanding between the United States and Iran includes the full opening of the Strait of Hormuz, and stipulates the extension of the ceasefire for 60 days, including Lebanon, with the resumption of nuclear negotiations during this period, and the immediate reopening of the Strait of Hormuz to international navigation without fees.

For his part, a US official said that “one of the options on the table is to reduce the level of uranium enrichment inside Iran under the supervision of UN inspectors.”

According to Axios, the mediators reached the current formula after talks between the Qatari mediator and the Iranian foreign minister, with ongoing contacts with US envoys Steve Wittkopf and Jared Kushner.

The website noted that the text has received high-level approvals within Iran, but has not yet received final approval from Supreme Leader Mojtaba Khamenei, while mediators continue to work on finalizing it and setting a date for the signing ceremony.

Last night, US President Donald Trump announced that a “settlement” to the war with Iran had been reached, indicating that the agreement was in its final stages, with the last arrangements to be completed in the next few days.

Shafaq.com

The government: Salaries for employees and retirees are guaranteed and there is no printing of currency.

The spokesman for the Prime Minister, Haider Al-Aboudi, confirmed today, Wednesday, that the Prime Minister, Ali Falih Al-Zaidi, will not hesitate to expose the corrupt, while he indicated that the salaries of employees and retirees are secured and there is no printing of currency.

Al-Aboudi said in a press conference held at the Council of Ministers that “the government decided, based on the directive of the Prime Minister, Ali Falih Al-Zaidi, to adopt a program budget in coordination with the World Bank,” noting that “the Prime Minister adopted the development fund project through effective international contributions.”

He added that “the Prime Minister has adopted a policy of restricting weapons to the state within a specific timeframe, in addition to adopting the development fund project,” noting that “the Prime Minister will not hesitate to announce those involved in stealing public funds.”

Al-Aboudi pointed out that “the government is committed to paying the dues of contracts and workers, and their transfer to the budget is left to the Ministry of Finance,” indicating that “the salaries of employees and retirees are secured and there is no printing of currency.”

He explained that “the Development Fund is an investment vehicle that receives international contributions from Iraq’s friends, and this contribution covers the requirements of the development situation. The Ministry of Finance is working on preparing a program budget, and the Prime Minister has decided to adopt a program budget to promote economic reforms.”

Al-Aboudi stressed that “the government is looking forward to completing the ministerial cabinet to complete its tools, but currently the House of Representatives is in legislative recess, and if the political consensus is completed, it is possible to hold a session to vote on what remains of the ministerial cabinet,” noting that “Iraq will not accept being a launching pad for targeting any country, and it will also not accept any country’s interference in Iraqi affairs.”

Alforatnews.iq